Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 14
9708Government policies to achieve efficient resource allocation and correct market failure
What is not an example of the application of 'nudge' theory?
- AA chain of coffee shops offers its customers a larger coffee if they bring their own reusable cup.
- BA government imposes an indirect tax on the purchase of sugary snacks, to try to reduce childhood obesity.
- CA government introduces an opt-out system for organ donation, to try to increase the number of organs donated.
- DA restaurant chain introduces smaller-sized main courses on its menu, to try to reduce the volume of food wastage.
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Correct answer: B. A government imposes an indirect tax on the purchase of sugary snacks, to try to reduce childhood obesity.
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